Hold up, have I missed a vital point or a change to Regs (easy done), but it seems to me, at face value that:-
Extract from a generic COM.
CASA Aircrew.
a) Operating aircrew will, as a SOP, carry Licence and Medical certificate and present these documents on request by authorised persons without delay, in any case no later than seven (7) days from the request. CAR 5.56 (1998).
N.B. Aircrew are advised that when logbook, licence or document presentation is requested, it is better not to leave the document (s) in CASA possession. Crew will request that the document (s) be made into a certified copy and retain the actual document in their possession. There are far too many instances of "lost" document events on public record. Consult the Chief Pilot prior to surrendering any logbook information.
Off the net, this AM.:-
5.56 Production of licence etc
(1) CASA may request the holder of a flight crew licence, a special pilot licence or a certificate of validation to produce to CASA any or all of the following:
(a) his or her licence or certificate;
(b) his or her personal log book;
(c) his or her medical certificate;
for inspection by CASA.
(2)If CASA requests the holder of a flight crew licence, a special pilot licence or a certificate of validation to produce a document under sub regulation (1), the holder must:
(a) produce the document without delay; or
(b) if the holder does not have immediate access to the document at the time the request is made — produce the document at the place specified by CASA not more than 7 days after the day of the request.
Perhaps not the full story told, 
Perhaps I'm out of date, anyone advise on LAW, not policy.