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| Delaware                                                                             |   | 33-0662986                           |
|--------------------------------------------------------------------------------------|--------|--------------------------------------|
| (State or other jurisdiction of incorporation or organization)                       |   | (I.R.S. Employer Identification No.) |
|                                                                                 |   |                                 |
| 576 Swan StreetRichmond, VIC, 3121 Australia(Address of principal executive offices) |
|                                                                                 |   |                                 |
| 61 03 92084182                                                                       |
| (Registrant's telephone number, including area code)                                 |

| Large accelerated filer                       | o      | Accelerated filer         | o      |
|-----------------------------------------------|--------|---------------------------|--------|
| Non-accelerated filer                         | o      | Smaller reporting company | þ |
| (Do not check if a smaller reporting company) |   |                      |   |

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|                           |                                                                                  | Page   |   |
|--------------------------------|---------------------------------------------------------------------------------------|--------|--------|
| PART I - FINANCIAL INFORMATION |
|                           |
| Item 1.                        | Consolidated Financial Statements (unaudited)                                         |   |   | 3 |   |
| Item 2.                        | Management's Discussion and Analysis of Financial Condition and Results of Operations |   |   | 13 |   |
| Item 3.                        | Quantitative and Qualitative Disclosures About Market Risk                            |   |   | 15 |   |
| Item 4.                        | Controls and Procedures                                                               |   |   | 15 |   |
|                           |                                                                                  |   |   |   |
| PART II - OTHER INFORMATION    |
|                           |
| Item 1.                        | Legal Proceedings                                                                     |   |   | 16 |   |
| Item 1A.                       | Risk Factors                                                                          |   |   | 16 |   |
| Item 2.                        | Unregistered Sales of Equity Securities and Use of Proceeds                           |   |   | 16 |   |
| Item 3.                        | Defaults Upon Senior Securities                                                       |   |   | 16 |   |
| Item 5.                        | Other Information                                                                     |   |   | 16 |   |
| Item 6.                        | Exhibits                                                                              |   |   | 17 |   |

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|                                                                                                                                                                                                                        |   | Page   |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|
| Consolidated Balance Sheets at December 31, 2011 (unaudited) and June 30, 2011                                                                                                                                              |   |   | 4      |   |
|                                                                                                                                                                                                                        |   |   |   |   |
| Consolidated  Statements of Operations and Comprehensive loss for the three and six months ended December 31, 2011 and 2010 and for the period from October 15, 2007 (Inception) to December 31, 2011 (unaudited) |   |   | 5      |   |
|                                                                                                                                                                                                                        |   |   |   |   |
| Consolidated  Statements of Cash Flows for the six months ended December 31, 2011 and 2010 and for the period from October 15, 2007 (Inception) to December 31, 2011 (unaudited)                                  |   |   | 6      |   |
|                                                                                                                                                                                                                        |   |   |   |   |
| Unaudited Notes to unaudited consolidated Financial Statements                                                                                                                                                              |   |   | 7      |   |

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| PROPANC HEALTH GROUP CORPORATION AND SUBSIDIARY(A Development Stage Company)CONSOLIDATED BALANCE SHEETS                                                                        |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                           |   |
|                                                                                                                                                                           |   | December 31,2011(unaudited) |   |   | June 30,2011 |   |
| ASSETS                                                                                                                                                                         |
| Current Assets                                                                                                                                                                 |   |   |   |   |   |   |
| Cash                                                                                                                                                                           |   | $ | 39,728 |   |   | $ | 132 |   |
| GST receivable                                                                                                                                                                 |   |   | 3,790 |   |   |   | 1,857 |   |
| Prepaid expenses and other current assets                                                                                                                                      |   |   | 4,797,439 |   |   |   | 10,777,951 |   |
| Total current assets                                                                                                                                                           |   |   | 4,840,957 |   |   |   | 10,779,940 |   |
| Property and Equipment, net                                                                                                                                                    |   |   | 5,431 |   |   |   | 6,655 |   |
| Patent Costs                                                                                                                                                                   |   |   | 26,468 |   |   |   | 27,563 |   |
|                                                                                                                                                                           |   |   |   |   |   |   |   |   |
| TOTAL ASSETS                                                                                                                                                                   |   | $ | 4,872,856 |   |   | $ | 10,814,158 |   |
|                                                                                                                                                                           |   |   |   |   |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY                                                                                                                                           |
|                                                                                                                                                                           |   |   |   |   |   |   |   |   |
| Current Liabilities                                                                                                                                                            |   |   |   |   |   |   |   |   |
| Accounts payable                                                                                                                                                               |   | $ | 38,952 |   |   | $ | 27,717 |   |
| Accrued Expenses and other payables                                                                                                                                            |   |   | 69,360 |   |   |   | 13,461 |   |
| Advances from Investor - related party                                                                                                                                         |   |   | - |   |   |   | 84,760 |   |
| Convertible debentures                                                                                                                                                         |   |   | 69,012 |   |   |   | - |   |
| Due to directors – related parties                                                                                                                                       |   |   | 63,762 |   |   |   | 66,400 |   |
| Loans from director – related party                                                                                                                                      |   |   | 75,288 |   |   |   | 78,403 |   |
| Employee benefit liability                                                                                                                                                     |   |   | 37,898 |   |   |   | 36,108 |   |
| Total current liabilities                                                                                                                                                      |   |   | 354,272 |   |   |   | 306,849 |   |
|                                                                                                                                                                           |   |   |   |   |   |   |   |   |
| TOTAL LIABILITIES                                                                                                                                                              |   |   | 354,272 |   |   |   | 306,849 |   |
|                                                                                                                                                                           |   |   |   |   |   |   |   |   |
| Commitments and Contingencies (See Note 8)                                                                                                                                     |   |   |   |   |   |   |   |   |
|                                                                                                                                                                           |   |   |   |   |   |   |   |   |
| STOCKHOLDERS’ EQUITY                                                                                                                                                     |   |   |   |   |   |   |   |   |
| Preferred stock, $0.01 par value; 10,000,000 shares authorized; zero shares issued and outstanding as of December 31, 2011 and June 30, 2011, respectively.                    |   |   | - |   |   |   | - |   |
| Common stock, $0.001 par value; 100,000,000 shares authorized: 72,003,276 and 71,915,890 shares issued and outstanding as of December 31, 2011 and June 30, 2011, respectively |   |   | 72,003 |   |   |   | 71,915 |   |
| Additional paid in capital                                                                                                                                                     |   |   | 14,529,709 |   |   |   | 14,401,919 |   |
| Accumulated other comprehensive income (loss)                                                                                                                                  |   |   | (454,755 | ) |   |   | (120,185 | ) |
| Deficit accumulated during development stage                                                                                                                                   |   |   | (9,628,373 | ) |   |   | (3,846,340 | ) |
| Total Stockholders' Equity                                                                                                                                                     |   |   | 4,518,584 |   |   |   | 10,507,309 |   |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                                                                                                                                     |   | $ | 4,872,856 |   |   | $ | 10,814,158 |   |

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| PROPANC HEALTH GROUP CORPORATION AND SUBSIDIARY(A Development Stage Company) |
|------------------------------------------------------------------------------|
| CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS                 |
| (UNAUDITED)                                                                  |

|                                                                                                       |   | For The Three monthsendedDecember 31, |       |   | For The Six monthsendedDecember 31, |   |       | For the period October 15, 2007 (Inception) to December 31, |   |
|------------------------------------------------------------------------------------------------------------|--------|---------------------------------------|------------|--------|-------------------------------------|--------|------------|-------------------------------------------------------------|--------|
|                                                                                                       |   | 2011                                  |       |   | 2010                                |   |       | 2011                                                        |   |   | 2010 |   |   | 2011 |   |
| REVENUE                                                                                                    |   |                                  |       |   |                                |   |       |                                                        |   |   |   |   |   |   |   |
|           Royalty Revenue - related party                |   | $                                     | -          |   |                                | $      | -          |                                                        |   | $ | - |   |   | $ | - |   |   | $ | 30,974 |   |
|                                                                                                       |   |                                  |       |   |                                |   |       |                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| OPERATING EXPENSES                                                                                         |   |                                  |       |   |                                |   |       |                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
|           Administration expenses                        |   |                                  | 2,875,967  |   |                                |   | 399,678    |                                                        |   |   | 5,940,245 |   |   |   | 763,073 |   |   |   | 9,054,683 |   |
|       Occupancy expenses                                                     |   |                                  | 3,210      |   |                                |   | 2,962      |                                                        |   |   | 6,466 |   |   |   | 5,669 |   |   |   | 50,168 |   |
|       Research and development                                               |   |                                  | -          |   |                                |   | 89,721     |                                                        |   |   | 5,278 |   |   |   | 351,972 |   |   |   | 643,322 |   |
| TOTAL OPERATING EXPENSES                                                                                   |   |                                  | 2,879,177  |   |                                |   | 492,361    |                                                        |   |   | 5,951,989 |   |   |   | 1,120,714 |   |   |   | 9,748,173 |   |
|                                                                                                       |   |                                  |       |   |                                |   |       |                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| LOSS FROM OPERATIONS                                                                                       |   |                                  | (2,879,177 | )      |                                |   | (492,361   | )                                                           |   |   | (5,951,989 | ) |   |   | (1,120,714 | ) |   |   | (9,717,199 | ) |
|                                                                                                       |   |                                  |       |   |                                |   |       |                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| OTHER INCOME (EXPENSE)                                                                                     |   |                                  |       |   |                                |   |       |                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
|           Interest expense                               |   |                                  | (614       | )      |                                |   | -          |                                                        |   |   | (797 | ) |   |   | - |   |   |   | (171,993 | ) |
|           Interest income                                |   |                                  | 36         |   |                                |   | 276        |                                                        |   |   | 40 |   |   |   | 369 |   |   |   | 8,904 |   |
|           Foreign currency transaction gain (loss)       |   |                                  | (2,863     | )      |                                |   | (38        | )                                                           |   |   | (3,181 | ) |   |   | (1,498 | ) |   |   | (6,560 | ) |
| TOTAL OTHER INCOME (EXPENSE)                                                                               |   |                                  | (3,441     | )      |                                |   | 238        |                                                        |   |   | (3,938 | ) |   |   | (1,129 | ) |   |   | (169,649 | ) |
|                                                                                                       |   |                                  |       |   |                                |   |       |                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| LOSS BEFORE INCOME TAXES                                                                                   |   |                                  | (2,882,618 | )      |                                |   | (492,123   | )                                                           |   |   | (5,955,927 | ) |   |   | (1,121,843 | ) |   |   | (9,886,848 | ) |
|                                                                                                       |   |                                  |       |   |                                |   |       |                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| INCOME TAX BENEFIT                                                                                         |   |                                  | 170,491    |   |                                |   | 80,809     |                                                        |   |   | 173,894 |   |   |   | 80,809 |   |   |   | 258,475 |   |
| NET LOSS                                                                                                   |   |                                  | (2,712,127 | )      |                                |   | (411,314   | )                                                           |   |   | (5,782,033 | ) |   |   | (1,041,034 | ) |   |   | (9,628,373 | ) |
|                                                                                                       |   |                                  |       |   |                                |   |       |                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| OTHER COMPREHENSIVE INCOME (LOSS)                                                                          |   |                                  |       |   |                                |   |       |                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
|            Foreign Currency translation gain (loss) |   |                                  | 252,456    |   |                                |   | 23,262     |                                                        |   |   | (334,570 | ) |   |   | 28,659 |   |   |   | (454,755 | ) |
|                                                                                                       |   |                                  |       |   |                                |   |       |                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| COMPREHENSIVE LOSS                                                                                         |   | $                                     | (2,459,671 | )      |                                | $      | (388,052   | )                                                           |   | $ | (6,116,603 | ) |   | $ | (1,012,375 | ) |   | $ | (10,083,128 | ) |
|                                                                                                       |   |                                  |       |   |                                |   |       |                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| BASIC AND DILUTED NET LOSS PER SHARE                                                                       |   | $                                     | (0.03      | )      |                                | $      | (0.01      | )                                                           |   | $ | (0.09 | ) |   | $ | (0.02 | ) |   | $ | (0.22 | ) |
|                                                                                                       |   |                                  |       |   |                                |   |       |                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| BASIC AND UNDILUTED WEIGHTED AVERAGE SHARES OUTSTANDING                                                    |   |                                  | 71,990,536 |   |                                |   | 63,802,229 |                                                        |   |   | 71,970,977 |   |   |   | 61,027,789 |   |   |   | 46,154,263 |   |

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|                                                                        |   | For the Six monthsEndedDecember 31, |       |   | For the period from October 15, 2007 (Inception) toDecember 31, |   |
|-----------------------------------------------------------------------------|--------|-------------------------------------|------------|--------|---------------------------------------------------------------------------|--------|
|                                                                        |   | 2011                                |       |   | 2010                                                                      |   |   | 2011 |   |
|                                                                        |   |                                |       |   |                                                                      |   |   |   |   |
| CASH FLOWS FROM OPERATING ACTIVITIES                                        |   |                                |       |   |                                                                      |   |   |   |   |
| Net loss                                                                    |   | $                                   | (5,782,033 | )      |                                                                      | $      | (1,041,034 | ) |   | $ | (9,628,373 | ) |
| Adjustments to reconcile net loss to net cash used in operating activities: |   |                                |       |   |                                                                      |   |   |   |   |   |   |   |
| Issuances of common stock for services                                      |   |                                | -          |   |                                                                      |   | 341,349 |   |   |   | 290,733 |   |
| Amortization of prepaid shares issued for services                          |   |                                | 5,640,097  |   |                                                                      |   | - |   |   |   | 6,285,204 |   |
| Officer shares contributed to third party consultant                        |   |                                | -          |   |                                                                      |   | - |   |   |   | 299,737 |   |
| Depreciation expense                                                        |   |                                | 973        |   |                                                                      |   | 744 |   |   |   | 9,330 |   |
| Changes in operating assets and liabilities:                                |   |                                |       |   |                                                                      |   |   |   |   |   |   |   |
| Accounts receivable                                                         |   |                                | -          |   |                                                                      |   | - |   |   |   | (664 | ) |
| GST receivable                                                              |   |                                | (2,035     | )      |                                                                      |   | 5,349 |   |   |   | (1,673 | ) |
| Other assets                                                                |   |                                | (7,632     | )      |                                                                      |   | (459,354 | ) |   |   | (7,097 | ) |
| Accounts payable                                                            |   |                                | 49,951     |   |                                                                      |   | (37,442 | ) |   |   | 69,751 |   |
| Employee benefit liability                                                  |   |                                | 3,272      |   |                                                                      |   | 8,175 |   |   |   | 33,358 |   |
| Accrued expenses                                                            |   |                                | 56,453     |   |                                                                      |   | (39,425 | ) |   |   | 72,412 |   |
| Accrued interest                                                            |   |                                | 797        |   |                                                                      |   | - |   |   |   | 184,614 |   |
| Net cash used in operating activities                                       |   |                                | (40,157    | )      |                                                                      |   | (1,221,638 | ) |   |   | (2,392,668 | ) |
|                                                                        |   |                                |       |   |                                                                      |   |   |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES                                        |   |                                |       |   |                                                                      |   |   |   |   |   |   |   |
| Patent costs                                                                |   |                                | -          |   |                                                                      |   | (22,882 | ) |   |   | (25,726 | ) |
| Purchase of equipment                                                       |   |                                | -          |   |                                                                      |   | (3,349 | ) |   |   | (14,786 | ) |
| Net cash used in investing activities                                       |   |                                | -          |   |                                                                      |   | (26,231 | ) |   |   | (40,512 | ) |
|                                                                        |   |                                |       |   |                                                                      |   |   |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES                                        |   |                                |       |   |                                                                      |   |   |   |   |   |   |   |
| Sale of common stock                                                        |   |                                | 10,321     |   |                                                                      |   | 1,283,130 |   |   |   | 1,461,971 |   |
| Contributed capital                                                         |   |                                | -          |   |                                                                      |   | - |   |   |   | 495,665 |   |
| Subscriptions receivable – related party                              |   |                                | -          |   |                                                                      |   | - |   |   |   | 22 |   |
| Related party expenses paid on behalf of company                            |   |                                | -          |   |                                                                      |   | - |   |   |   | 57,262 |   |
| Loan repayments of principal stockholder                                    |   |                                | -          |   |                                                                      |   | (14,172 | ) |   |   | (14,834 | ) |
| Investor advances                                                           |   |                                | -          |   |                                                                      |   | - |   |   |   | 79,112 |   |
| Proceeds from convertible promissory notes                                  |   |                                | 70,009     |   |                                                                      |   | - |   |   |   | 70,009 |   |
| Loan proceeds from principal stockholder                                    |   |                                | -          |   |                                                                      |   | - |   |   |   | 369,174 |   |
| Net cash provided by financing activities                                   |   |                                | 80,330     |   |                                                                      |   | 1,268,958 |   |   |   | 2,518,381 |   |
|                                                                        |   |                                |       |   |                                                                      |   |   |   |   |   |   |   |
| Effect of exchange rate changes on cash                                     |   |                                | (577       | )      |                                                                      |   | 23,057 |   |   |   | (45,473 | ) |
|                                                                        |   |                                |       |   |                                                                      |   |   |   |   |   |   |   |
| NET INCREASE IN CASH                                                        |   |                                | 39,596     |   |                                                                      |   | 44,146 |   |   |   | 39,728 |   |
|                                                                        |   |                                |       |   |                                                                      |   |   |   |   |   |   |   |
| CASH AT BEGINNING OF PERIOD                                                 |   |                                | 132        |   |                                                                      |   | 528 |   |   |   | - |   |
|                                                                        |   |                                |       |   |                                                                      |   |   |   |   |   |   |   |
| CASH AT END OF PERIOD                                                       |   | $                                   | 39,728     |   |                                                                      | $      | 44,674 |   |   | $ | 39,728 |   |
|                                                                        |   |                                |       |   |                                                                      |   |   |   |   |   |   |   |
| Supplemental Disclosure of cash flow information                            |   |                                |       |   |                                                                      |   |   |   |   |   |   |   |
| Cash Paid during the period:                                                |   |                                |       |   |                                                                      |   |   |   |   |   |   |   |
|      Interest                                      |   | $                                   | -          |   |                                                                      | $      | - |   |   | $ | - |   |
|      Income Tax                                    |   | $                                   | -          |   |                                                                      | $      | - |   |   | $ | - |   |
|                                                                        |   |                                |       |   |                                                                      |   |   |   |   |   |   |   |
| Supplemental disclosure of non-cash investing and financing activities:     |   | $                                   | -          |   |                                                                      | $      | - |   |   | $ | - |   |
| Conversion of notes payable to common stock                                 |   | $                                   | -          |   |                                                                      | $      | - |   |   | $ | 341,208 |   |
| Conversion of accrued interest to common stock                              |   | $                                   | -          |   |                                                                      | $      | - |   |   | $ | 193,648 |   |
| Gain on related party debt conversion                                       |   | $                                   | -          |   |                                                                      | $      | - |   |   | $ | 9,252 |   |
| Prepaid common stock issued for services                                    |   | $                                   | -          |   |                                                                      | $      | - |   |   | $ | 10,823,048 |   |
| Advance from Investor – related party, reclassified to common stock   |   | $                                   | 80,000     |   |                                                                      | $      | - |   |   | $ | 80,000 |   |
| Conversion of accrued expenses to common stock                              |   | $                                   | 36,272     |   |                                                                      | $      | - |   |   | $ | 36,272 |   |

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|                                     |   | December 31, 2011 |      |   | June 30, 2011 |   |
|------------------------------------------|--------|-------------------|-----------|--------|---------------|--------|
|                                     |   |              |      |   |          |   |
| Prepaid common stock issued for services |   | $                 | 4,796,735 |   |          | $      | 10,775,858 |   |
| Prepaid insurance                        |   |              | 704       |   |          |   | 2,093 |   |
|                                     |   |              |      |   |          |   |   |   |
|   Total Other Current Assets        |   | $                 | 4,797,439 |   |          | $      | 10,777,951 |   |

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| Exhibit Number                                                |   | Description                                                                                                   |
|---------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------|
| 31.1                                                          |   | Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
| 31.2                                                          |   | Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
| 32.1                                                          |   | Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act.              |
| 32.2                                                          |   | Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act .             |
| 101.INS                                                       |   | XBRL Instance Document (1)                                                                                    |
|          101.SCH |   | XBRL Schema Document (1)                                                                                      |
|          101.CAL |   | XBRL Calculation Linkbase Document (1)                                                                        |
|          101.LAB |   | XBRL Label Linkbase Document(1)                                                                               |
|          101.PRE |   | XBRL Presentation Linkbase Document (1)                                                                       |
|          101.DEF |   | XBRL Definition Linkbase Document (1)                                                                         |
|                                                          |   |                                                                                                          |

| (1) | To be filed within 30 days of the filing of this Quarterly Report on Form 10-Q pursuant to Rule 405(a)(2)(ii) of Regulation S-T. |
|-----|----------------------------------------------------------------------------------------------------------------------------------|

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|                    | PROPANC HEALTH GROUP CORPORATION |                                                                                            |
|-------------------------|----------------------------------|-------------------------------------------------------------------------------------------------|
|                    |                             |                                                                                            |   |
| Date: February 21, 2012 | By:                              | /s/ James Nathanielsz                                                                           |   |
|                    |                             | Name: James Nathanielsz                                                                         |   |
|                    |                             | Title:   Chief Executive Officer, Chief Financial Officer                             |   |
|                    |                             |             and Chief Accounting Officer |   |

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