Bug, ant and wombat are confused (5,7)
I believe the answer is:
water boatman
'bug' is the definition.
(type of insect)
'ant and wombat are confused' is the wordplay.
'and' is a charade indicator (letters next to each other).
'confused' indicates anagramming the letters.
'wombat'+'are'='wombatare'
'ant' after 'wombatare' is 'wombatareant'.
'wombatareant' with letters rearranged gives 'WATER-BOATMAN'.
(Other definitions for water boatman that I've seen before include "Aquatic insect" , "Floating insect" , "Carnivorous aquatic bug" , "Pond-skimming insect" .)