A senator has urged decisive action to tackle the growing racist hate directed at Indigenous Australians, after an attempted Invasion Day rally bombing was declared a terrorist act.

Thousands of people were evacuated from Forrest Place in Perth’s city centre on January 26 after a 31-year-old man allegedly threw an explosive device at a crowd of Indigenous people, families and supporters.

It’s left First Nations Australians fearful and angry, as they come to terms with the allegedly targeted attack that was designed to inflict mass casualties.

Authorities on Thursday confirmed the incident was an act of terror motivated by racist, pro-white nationalist ideology. The accused faces life behind bars if he is found guilty.

Independent Victorian senator Lidia Thorpe was critical of the Prime Minister Anthony Albanese’s response in federal parliament after the declaration was made.

“His suggestion that these racist or white supremacist views live only in corners of the internet is minimising the reality,” she said on Thursday.

“First Peoples face these hateful views every day … It’s everywhere, and it is growing.”

Charges against the accused man, who remains in custody, have been upgraded to engaging in a terrorist act.

Police will allege the incident was a nationalist and racially motivated attack targeting First Nations people at the protest.

Authorities were criticised following the alleged attack for not immediately declaring it a terrorist act and not taking it seriously amid cries of double standards and racism.

Police have defended their actions, saying a comprehensive investigation was required to gather the facts.

Home Affairs Minister Tony Burke said on Thursday a joint counter terrorism team was engaged within 40 minutes of the incident.

Thorpe also called on Albanese to talk honestly about the prevalence of white supremacist ideology in Australia.

“White supremacy is a growing threat to First Peoples, and to black and brown communities across this country,” she said.

“The Albanese government must now begin the serious work to address systemic racism, to stamp out white supremacy and to protect our communities.”

That should start by implementing the National Anti-Racism Framework, which was delivered by the Australian Human Rights Commission more than a year ago, Thorpe said.

The plan proposes reforms across legal, justice, health, education, workplaces, media, arts and data collection to tackle all forms of racism, including antisemitism.

-AAP