The aircraft departed Van Nuys, CA on a local instructional flight for the purpose of preparing one of the pilots for a biennial flight review. During the flight, the pilots proceeded to the Camarillo Airport for a landing. Both pilots report that advisory radio transmissions were made on downwind, base, and final approach. While on a short final approach, they felt the impact which the instructor reported as similar to wake turbulence. A go-around was started, but discontinued as soon as the instructor saw the other aircraft and realized they had a mid-air collision with N7254L. The pilot of N7254L was on a steeper final approach for his third and last practice landing when the collision occurred. None of the pilots were aware of the close proximity of the aircraft until after the collision. An investigation revealed that the propeller of N7254L made contact with the rudder and right stabilator of N24584. Both aircraft landed safely after the collision.