A simulated forced landing exercise was planned by the instructor as part of an endorsement onto the type. The exercise was commenced at about 2800 feet above ground level, but because of distractions relating to radio transmissions, engine clearing checks were not conducted during the descent. The student misjudged the approach and was instructed to go-around. When the throttle was opened at about 500 feet, there was no response from the engine. The instructor took control, but was unable to prevent the aircraft touching down about 90 metres short of the selected strip. The gear was torn off and the right wing was severed by a collision with a fence post. Inspection of the wreckage did not reveal any defects with the engine or its systems that could have contributed to the occurrence, and the reason for the reported loss of power was not determined. On detection of the power loss, the aircraft manufacturer's loss of power checks were not attempted, nor were changes to the aircraft configuration conducted which would have improved glide performance.
