By the ABC Indigenous Affairs Team

Photo: ABC News / Cason Ho

First Nations leaders have welcomed WA Police's announcement they are investigating Monday's alleged Invasion Day rally attack as "a potential terrorist attack", but still want to see stronger action from the federal government.

Noongar woman Hannah McGlade told ABC News Breakfast it appeared police had "heard our concerns".

"A lot of people have been adding concern that it hasn't been looked at properly as a hate crime or even possibly as a terror crime," she said.

"And it seems police have heard our concerns and are working with the Australian Federal Police now to investigate this more fully."

Photo: ABC / Dunja Karagic

WA Police allege a 31-year-old man threw a homemade bomb containing screws and ball bearings surrounded by an explosive liquid into the crowd of about 2,500 people in Perth on Monday.

He is charged with intent to do harm in such a way as to endanger life, health or safety, and with makin

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