AbstractStratigraphic patterns and sequence development in tectonically active extensional basins remain poorly documented in comparison with passive‐margin settings. Rift basin fills are generally characterized by coarsening‐upward trends in response to the rapid creation of accommodation by extensional faulting, and the progressive filling of graben during more quiescent periods. The Early Permian Irwin River Coal Measures in the Northern Perth Basin (Western Australia) record a complex stratigraphic arrangement of conglomerate, sandstone, mudstone and coal, and have been attributed to delta plain depositional environments that developed in a cool–temperate climatic setting during syn‐rift activity. Sedimentary analysis of outcrop and core data from the fault‐bounded Irwin Terrace is used to distinguish nine facies associations reflecting deposition in braided rivers, fixed‐anastomosed channel belts, tide‐influenced coastal environments and storm‐affected distal bays. The broader depositional system is interpreted as a morphologically asymmetrical tide‐dominated embayment with a fluvial and wave influence. The stratigraphic architecture of the Irwin River Coal Measures was strongly influenced by the evolving rift basin margin. Fault reactivation of the major basin‐bounding Darling Fault in the early syn‐rift phase caused footwall uplift and the inception of transverse palaeo‐valleys occupied by braided fluvial systems. Fault block subsidence during the subsequent balanced, backstepping and drowning phases resulted in a dominantly retrogradational stacking pattern indicating progressive flooding of marginal‐marine areas and culminating in deposition of distal marine elements. In the active rift basin, it is proposed that preservation of a shallow‐marine syn‐rift sequence was promoted by the geomorphological confinement of the embayed system increasing tidal current acceleration and hampering transgressive ravinement. The proposed sequence model demonstrates that transgressive successions can develop in the early syn‐rift phase in response to footwall uplift and tectonic subsidence. The syn‐rift sequence recording the filling of an embayment on a rift basin margin may be applied in similar tectonic and/or depositional contexts worldwide.