A man accused of throwing an improvised explosive device into a large crowd of protesters should face "the full force of the law", Anthony Albanese says.
The 31-year-old, who cannot be named for legal reasons, has been charged over the attack at Monday's Invasion Day rally in Perth.
Police on Tuesday revealed the device was designed to "explode on impact", saying it was only down to good luck it did not detonate.
The accused faced Perth Magistrates Court on Tuesday charged with an unlawful act or omission with intent to do harm, and with making or possessing explosives under suspicious circumstances.
He did not apply for bail and the matter was adjourned until February 17.
The court granted a suppression order of the man's identity due to fears for his safety.
Prime Minister Anthony Albanese earlier said the man's alleged actions were shocking.
"My view … is that they should throw the book at him," he told reporters in Darwin.
"This was an incident that is quite shocking. He's been charged with two serious offences and I look forward to him being prosecuted to the full force of the law."
Police evacuated Forrest Place in central Perth about 12.15pm on Monday after an object was found near the main stage, where about 2500 people were gathered.
The man removed the device from his bag and threw it into the crowd from a first-floor walkway before fleeing, police allege.
Forensic teams searched the man's home on Monday and the device was examined by the bomb response unit.
It was confirmed to be a homemade improvised explosive device containing a mixture of volatile chemicals, with nails and metal ball bearings attached to the exterior.
A combination of chemicals and materials consistent with the manufacture of homemade explosives were found at the home, police said.
WA Police Commissioner Col Blanch said it was fortunate the device did not explode.
"For whatever reason it hasn't detonated, but it is explosive compounds and it did contain the ball bearings and the screws and/or nails," he told Perth radio station 6PR on Tuesday.
All major capital cities hosted Invasion Day protests, while opposing right-wing March for Australia rallies took place in capitals and some regional centres on Australia Day.
January 26 is a day of mourning for many Indigenous people, marking the First Fleet's 1788 arrival and the start of British colonisation.
The day was marked at a Brisbane rally by two men burning the national flag, sparking a debate over whether the act should be banned by federal legislation.
Federal Education Minister Jason Clare condemned the incident but cautioned against creating a federal ban on flag burning.
“I think this bloke’s an idiot. I think this bloke doesn’t understand how great this country really is," he said.
"This bloke’s obviously an attention seeker and he got the attention he was looking for."
Mr Clare said state-based laws gave police powers to respond to similar incidents.
There is no federal, state or territory law that specifically bans burning the Australian flag.
It has generally been considered an act of free political expression and when anyone is charged it has usually been under offences such as causing a public nuisance.
However, Queensland Premier David Crisafulli said burning the national flag fell under federal jurisdiction.
"If the leaders in the nation's capital decided that that was an offence, we'd certainly support it, and we'd certainly police it," he said.
