The Significant Investor visa is becoming more popular as the preferred option for high net worth individuals to gain residency in Australia.

The latest statistics issued by the Department of Immigration and Border Protection (DIBP) show that 343 visas were granted, representing inbound investment into Australia of over $1.7 billion.

A total of 1,582 Expressions of Interest and 1,095 applications have been lodged to date, with most visa applicants moving to Victoria and New South Wales. Victoria has seen 171 visas granted and New South Wales 126.

Indeed, the government of New South Wales has introduced changes which mean that Significant Investor visa applicants are no longer be required to invest $1.5 million of their $5 million into NSW Waratah Bonds.

Other states are also committed to the visa programme — the data shows that 21 visas were granted in Queensland, 16 in Western Australia and nine in South Australia.

While approvals are on the increase, the level of refusals or withdrawals under this visa category is high. Figures suggest that 11% to 12% of applications are refused or withdrawn.

According to KPMG, individuals should seek professional advice before making an application, especially in light of the investment changes announced for New South Wales.

Currently, applicants are able to invest $5 million into the complying investment of their choosing. These can include Commonwealth, State or Territory government bonds, Australian Securities and Investment Commission-regulated managed funds. All potential investment funds must have a mandate for investing in Australia as well as direct investment into Australian proprietary companies.

However, those nominated before 01 September 2014 will still need to invest $1.5 million in NSW Waratah Bonds.

The programme is also under review in order to find ways of enhancing greater flexibility and investment choices and faster application processing. Such reforms are expected to streamline the process and increase applications.

The visas are proving particularly popular with wealthy Chinese. The DIBP figures show that of the 343 significant investor visas granted, some 90% are to Chinese investors.

According to a recent report by Shanghai research firm Hurun, 64% of Chinese people worth more than $US1.6 million are either getting out of the country now, or they’re making plans to do so.