This is most certainly news. The Australian is just reporting the information given by Arts Law.

The competition PR person says "The point of the competition . . . is to be able to collect these photos and to create an asset, a coffee table book, that we can then on-sell. And we need the copyright to these photos to do that,"
Whereas the Arts Law person says "They don't need exclusive rights. A non-exclusive licence would be sufficient for their purposes," Ms Ayres said. "They are also asking for certain warranties in relation to the work which you would usually see in a highly commercial agreement."

Hopefully if this stuff is publicised it will prompt organisers of other competitions to have fairer conditions.