Hi JNaab and Remsta,
There unfortunately wasn't any clear information on this topic, so I asked an Australian lawyer who is familiar with US-Australian tax laws, and this is what he said:
On this matter of Australian Superannuation, there is an important distinction to make on what is considered "Income":
1. The gains/dividends/investment earnings that stays within the Superannuation fund, which you have no access to until you reach retirement age, is not immediately taxable, but can be depending on the circumstances in which they are drawn in the future.
2. Which brings to - the distribution that you do take from the Superannuation - e.g. due to the recent special COVID relief provisions - gets a bit more tricky, because it will depend on what exactly are you withdrawing: are you withdrawing the contributions (and their earnings) from contributions you made while you were an Australian resident for tax purposes, or are you withdrawing contributions and earnings from contributions you made while you are a U.S. resident for tax purposes? These factors affected how your Superannuation gets treated for US Tax purposes, and whether or not you owe U.S. Taxes on the distributions you took.
So the Australian Tax Lawyer advised me to see a CPA, and not just any CPA, but need to find a CPA that knows about the US-Australian international tax treaty thing. I haven't yet found one, so I haven't made any drawings on my super, but I have continued to report it on FBAR and FinCEN forms annually.
