The handbrake acts on the transfer box. If you look under the car you'll see what looks like a rear drum brake with the rear prop shaft attached. The handbrake shoes are in that.
The adjustment is carried out by;
Release handbrake lever.
tightening the brake shoe adjustment bolt to 25Nm(18 lbf.ft), which should tighten the drum.
Slacken the bolt by 1.5 turns.
The handbrake should now action within 3 clicks of the ratchet.
The adjustment bolt is situated next to the handbrake cable on the rear of the drum.
This info has been taken from the RAVE Cd, available on EBAY for pennies.