A handling fee of RMB 170 is required to remit RMB 170,000 from domestic Alipay to the University of Sydney. According to relevant public information, Alipay's transfer fee is 0.1%, and there is a 0.1 fee for every 100 yuan. Therefore, a domestic Alipay remittance of 170,000 yuan to the University of Sydney requires a handling fee of 170 yuan.