I noticed on Agent Query that one of their recently added sponsors, Ilura Press of Australia, is holding a contest for novels of literary fiction. Ilura is brand-spanking new, and the premise behind the contest is that the two winners will be awarded a AU$5000 advance (roughly USD$3700) and a publishing contract. These two entries will apparently be the first two novels that Ilura Press publishes; international submissions are welcome. There is an entry fee of AU$22 (about USD$18) and you may submit via snail mail or electronically (for a fee of AU$20).
I've been reading throughout Absolute Write and elsewhere that it's best to steer clear of contests that require an entry fee. However, the fact that Agent Query itself posted the contest notice suggests otherwise. So, is this a legitimate, worthwhile contest to enter or not?