Isn't it a legal requirement that a pilot's operating handbook (or equivalent) 
be either in the aircraft, or located at the airfield if the plane is less than 
1 hour's flight time?

Refer most recent Civil Aviation Safety Regulations 1998
See: http://www.casa.gov.au/rules/1998casr/pdf/all1998.pdf
(Warning this is a 3.3 MB file)
Or use: http://www.casa.gov.au/rules/1998casr/
And navigate around.

137.120 Documents to be carried on a flight
(1) The pilot in command of an aeroplane being used for an application 
operation must have a copy of the aeroplane's flight manual, or an approved 
alternative document, on board the aeroplane on every flight.
Penalty: 10 penalty units.
(2) The pilot must also have the documents or copies mentioned in 
subregulations (4) and (5) on board the aeroplane on a flight if the aeroplane 
will be more than 1 hour's flying time (at cruise speed in still air) from the 
operator's principal operating base.
Penalty: 10 penalty units.

(3) However, if:
(a) the aeroplane is to be based for more than 7 days at a place that is not 
the operator's principal operating base (a substitute base); and (b) the 
aeroplane is less than 1 hour's flying time (at cruise speed in still air) from 
the substitute base; the documents or copies mentioned in subregulations (4) 
and (5) may be kept at the substitute base.
(4) For subregulations (2) and (3), the documents are:
(a) the aeroplane's flight and maintenance records; and
(b) each of the following documents, or copies of the documents:
(i) the aeroplane's certificate of registration;
(ii) the aeroplane's certificate of airworthiness (or, if applicable,
special flight permit);
(iii) the current medical certificate for, and licence of, the pilot.
(5) However, if the operations manual states that only a specified part of a 
document mentioned in subregulation (1) or paragraph (4) (a) must be carried 
during a flight, only that part need be carried.
(6) A contravention of subregulation (1) or (2) is an offence of strict 
liability.

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