The Galactic Archaeology with HERMES (GALAH) Survey is a massive observational project to trace the Milky Way's history of star formation, chemical enrichment, stellar migration and minor mergers. Using high-resolution (R~28,000) spectra taken with the High Efficiency and Resolution Multi-Element Spectrograph (HERMES) instrument at the Anglo-Australian Telescope (AAT), GALAH will determine stellar parameters and abundances of up to 29 elements for up to one million stars. Selecting targets from a colour-unbiased catalogue built from 2MASS, APASS and UCAC4 data, we expect to observe dwarfs at 0.3 to 3kpc and giants at 1 to 10kpc. This enables a thorough local chemical inventory of the Galactic thin and thick disks, and also captures smaller samples of the bulge and halo. In this paper we present the plan, process and progress as of early 2016 for GALAH survey observations. In our first two years of survey observing we have accumulated the largest high-quality spectroscopic data set at this resolution, over 200,000 stars. We also present the first public GALAH data catalogue: stellar parameters (Teff, log(g), [Fe/H], [alpha/Fe]), radial velocity, distance modulus and reddening for 10680 observations of 9860 Tycho-2 stars that may be included in the first Gaia data release.