In other words, there will be 5% of applicants who entered the course with ENTERs below that of the Fringe ENTER. That's my understanding of it anyway.
Also in other words, because you have 95% of people who enter the course above the Fringe ENTER, 5% of people will enter the course below the requirement of the Fringe ENTER. :p
But in response to your question champorado: taking Arts at Monash Clayton 2008 as an example, 85.80 was the clearly-in, 82.50 was the fringe, and thus it's confusing of why that is such a case!
But, we also notice that 21.43% of round 1 offers were to students
below the clearly in ENTER of 85.80.
Thus, although the clearly in was 85.80, because such a large proportion of offers was offered to students below this clearly-in, the Fringe enter is inevitably lower than the clearly-in.
Why? I assume it's because of the middle-band considerations.

(Hope I make sense!)