I cannot see that anything you can do with two, or more, funds you cannot do with one. Its all about accounting. What the ATO has pointed out is that they don't care how many funds you have as, in the end, all of it is accountable to you anyway. Interest, franking credits, CGT, etc are all aggregated in the end.
Annual audit and tax accountant fees seem to me to be a very expensive way to keep track of your investment and payout strategy! I've not read anything (yet) that would justify having multiple funds other than, as the ATO hints at, to defraud the government.
Cafa's example is a construct. Any single share investment held in a single fund will grow "tax free". You simply cannot isolate financial outcomes by physically separating them into different funds. Indeed, you don't want that: the franking credit from your share income will pay the tax for the interest income on your cash holdings. That will happen irrespective of whether the two classes are held in different funds or not.
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I cannot see that anything you can do with two, or more, funds...
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