But the move has also sparked concerns much of this investment will flow into Australian property, driving prices up even further.

The new premium investor visa program puts Australia on the front foot in the competition for rich investors looking to safeguard their wealth in stable offshore markets, advisers said.

"Australia competes with many countries for high net wealth migrants, making it an attractive prospect is in the national interest," migration lawyer Alan Rigas said.

The program, announced on Tuesday as part of the government's competitiveness agenda, gives permanent residency to applicants investing $15 million in certain assets after 12 months.

"The changes can only lead to more investment," said Prosperity Fountainguard Advisers' Luke Malone, who led a nine city investor roadshow throughout China in June.

Fountainguard has a second investor delegation currently en route to Shanghai, where it will present to more than 20 individuals looking to invest up to $20 million each. He said the visa, available from July 2015, will be "highly attractive" to this group.

But business migration agent John Findley feared much of this investment will be attracted to property assets. It will drive up prices, which many, including billionaire Lang Walker, said are already inflated by a flood of Chinese developers.

"The likelihood of the $15 million going into property is very real and very high," said Mr Findley.

Investment choices too broad

He said investment choices for compliant funds are too wide and the government should direct it towards infrastructure, or new investment in small and medium businesses.

NSW recently scrapped the requirement for significant investor visa applicants to park $1.5 million into low yield Waratah Bonds.

As part of the changes announced on Tuesday, the Australian Trade Commission, or Austrade, will be handed responsibility for drawing up the list of complying investments.

While details are yet to be released, the government has indicated compliant investments will align to five sectors earmarked for growth: food, agri-business, mining technology and services, gas and energy resources, medical technology and pharmaceuticals, and advanced manufacturing.

Latest figures show that to July 1, the federal government has granted 286 significant investor visas, out of a total of 1027 applications, bringing $1.4 billion worth of foreign investment. Most came from China.

The significant investor visa program, which began in 2012, grants permanent residency to foreigners who invest a minimum of $5 million in prescribed assets after four years. A review by the department of immigration found other countries with similar investor visa programs "have less onerous application criteria and processing requirements".

The government wants to "target premium investors more effectively", and streamline the administration of the program. It also wants to "diversify the sources of investors" under the program, while maintaining safeguards to ensure it is not abused.

Safe Haven

Risk Basis Point managing director David Chin said investment from China has only just begun. "Research indicates that 5 per cent of the wealth of Chinese high net worth individuals was allocated outside of China.

"In other countries this group of investors have around 24 per cent of their wealth outside their home region."