In Australia, when calculating the total tax liability of an individual resident what happens with dividends earned from an investment and franked credits

Example: An individual made $10,000 from dividends and $3,000 of those were franked credits.

Question: using this formula income tax = (taxable income x tax rate) - tax offsets. Would I add the 10,000 to the taxable income and then add the 3,000 franked credits to the tax offsets. If not how and where would I input the numbers into he formula?