Footage released by WA Police shows the suspect in the attempted bomb attack on Boorloo/Perth's Invasion Day rally fleeing the scene.

The video also shows a small amount of smoke rising from the device thrown from a walkway above at the rally below.

The device, which did not explode, included glass container filled with explosive liquid, surrounded by ball bearings and screws.

A 31-year-old Warwick man appeared in court Tuesday facing one charge of 'Unlawful act or omission with intent to harm (endangering life, health or safety of any person)', and one charge of 'Making or possession of explosives under suspicious circumstances', and will appear in court again next month. He has been refused bail.

Police say preliminary investigations indicate the suspect allegedly worked alone, and that there does not appear to be any further danger to the public related to the incident.

Commissioner Col Blanch said WA Police are investigating whether the incident should be classified as an act of terror.

He thanked bystanders who allegedly saw the man ignite a fuse and throw the object into the crowd, and immediately alerted nearby police who were also on the upper level terrace.

A co-organiser of the rally, Noongar man Fabian Yarran, said on Tuesday the attack "must be fully investigated as an act of terrorism and a hate crime against First Nations people and protesters, and appropriately charged as such".

Mr Yarran also said WA Police had demonstrated "a significant lack of communication, failure to adequately address far-right threats, and insufficient engagement with First Nations communities".