A Perth man has been charged with making an explosive with intent to harm after a suspected improvised bomb was thrown into a crowd of protesters at an Invasion Day rally in the CBD Monday.

Thousands of people were preparing to march from Forrest Place to oppose the date of Australia Day when an object the size of a coffee mug was hurled into the crowd from a terrace balcony above at around 12.30pm.

The incident was immediately reported to police who evacuated the area, with protesters beginning their march towards the Swan River, most seemingly unaware or confused about what had sparked the sudden move on directions.

WA Police Commissioner Col Blanch said the man who allegedly threw the object, a 31-year-old from Warwick, was arrested immediately.

Police moving protesters on after an object was thrown into the crowd at Perth’s Invasion Day rally. Michael Philipps

“The device that was located just in front of the stage area contained ball bearings, contained screws, and those items were wrapped around an unknown … liquid in a glass container,” he said.

It did not detonate but WA Police Minister Reece Whitby said the incident could have been disastrous.

Police pouring chemicals into drums outside the accused man’s house. 9 News Perth

“The incident … had the potential to be a mass casualty event,” he said.

“What happened today in Forrest Place was absolutely un-Australian.”

A man was escorted by police to the residence on Monday night.9 News Perth

Tactical response group offices and investigators from the state security unit were at the accused man’s house on Monday.

Forensic officers were later seen removing items from the residence, and pouring chemicals out of bottles into large drums.

Meanwhile, a man in a blue jumpsuit was escorted to the house in the evening to assist police.

WA Police believe the accused man acted alone and that there is no ongoing risk to the community.

He is due to appear in Perth Magistrates Court on Tuesday.

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