Perlman is the son of second generation Jewish Australians of East European descent. He lives in Melbourne, Australia, and formerly worked as a barrister.
In 1994 he won the The Age Short Story Award for The Reasons I Won't Be Coming, a short story that later gave the title to his first collection of short stories, published in 1999. In 1998, his first novel Three Dollars was published, and this went on to win The Age Book of the Year and the Betty Trask Prize. His second novel Seven Types of Ambiguity was shortlisted for the Miles Franklin Award, Australia's most prestigious literary award, in 2004.
Perlman studied law at Monash University, graduating in 1989.